Movistar Marketing Strategy & Marketing Mix (4Ps)
Marketing Strategy of Movistar analyzes the brand with the marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion). These business strategies, based on Movistar marketing mix, help the brand succeed in the market. Let us start the Movistar Marketing Strategy & Mix to understand its product, pricing, advertising & distribution strategies:
Quick Glance:
Movistar Product Strategy:
The product strategy and mix in Movistar marketing strategy can be explained as follows:
Movistar is one of the leading telecom operators in Spain, offering a variety of services to over 20 million customers in Spain & Europe. The brand is owned by Telefonica.
Movistar offers following products & services as a part of its marketing mix strategy:
Individual users: Landline connection plan, Internet plan, Mobile connection plan, TV packages and Fusion plans which are combination of all these plans
Corporate users: Landline connection plan, Internet plan, Mobile connection plan, Fusion plans which are combination of all these plans and Digital transformation plans
This gives an overview of the services which are offered by Movistar to its customers.
Image: Wikimedia
Movistar Price/Pricing Strategy:
Below is the pricing strategy in Movistar marketing strategy:
Movistar has been playing a very innovative pricing strategy. The advantage it holds is that it is not only a telecom company but has gone from being just a telecom company to being the audiovisual entertainment company in the market.
In line with this strategy, today the company presents a new product range that keeps in mind the preferences of the market. Movistar has different plans operating in different countries and in general they price their products to increase their market share of 50%. The roaming charges (total and not just in Europe) account about 2% of the group’s global income, and therefore not all of its revenues will be affected. The competition also sometimes copied the same move in several countries and the advantage offered by Movistar gets diluted. However, novel schemes and innovative plans are always in the pipeline. Company strives to create more value for money for the consumers, though it seems a difficult strategy as all the operators work towards the same direction. Overall the consumers are benefitted.
Movistar Place & Distribution Strategy:
Following is the distribution strategy in the Movistar marketing mix:
Movistar is marketed in many countries such as Spain, Mexico, Colombia, Argentina, Peru, Venezuela, Chile, Ecuador, Guatemala etc. Movistar has tasted success in Spain with the largest base of customers in its fold and almost 2/5th of the market in the fold.
The company plans to gain more share by offering innovative products.
Movistar Promotion & Advertising Strategy:
The promotional and advertising strategy in the Movistar marketing strategy is as follows:
Apart from the conventional print and TV advertisements, Movistar uses innovative mediums and contents to promote their products. YouTube is one of the modes of advertisements used frequently. Several popular songs have been used in the audio-visual promotion of Movistar. This helps the company to create an emotional connect with the target audience.
Since this is a service marketing brand, here are the other three Ps to make it the 7Ps marketing mix of Movistar.
Process:
The business process of Movistar involves focus on Technology, Production, Sales & Distribution, Service and Support. The Technology part is taken care of by the principal company i.e. Telefonica. The R & D team of Telefonica continuously works towards the improvement of Technology and particularly the connectivity speed which is a very critical parameter of the business. Also, a continuous tracking of the market is done to check for new candidate companies in the technology sector for acquisition. The production process being very critical, standardisation of the production practices is attained. Movistar employees with high production knowledge and eagerness to overcome difficult situations in production are deployed. The sales and distribution process is the most important part as it helps to create new customer base and retain the existing base. The commercial offers are kept as simple as possible and aim towards maintaining customer loyalty. The brand promotion strategy and the distribution strategy need to be in alignment. The products are made available in retail stores and online. The sales and service support function involve personalised service to customers. Call centre service with fast complaint / query resolution is the requirement.
People:
Movistar focuses on 3 things – to have the best team, high standard of company culture and the simplest organisational culture. Movistar’s way of working is influenced by several factors such as demographic, social, cultural, economical, educational and the different dialect used by people in the countries in which they do business. A different model of doing business thus evolves and the structure of the company is more of tailor made to suit the requirement of the country in which it operates. Thus one can say that though the company has global presence it gives in depth importance to behave as a domestic company in each country.
Physical Evidence:
Movistar has earned various awards in the industry (such as the award which recognises the company as giving solution on the Global level).It also got an award as one of the Best company to work for in Spain. It is also considered as one of the energy efficient company and has got awards to that extent from the industry experts. It also has recognition in the industry of being a company to bring a shift in the way telecom company can be viewed as not only as a mere operator of tele-lines company but a complete entertainment company. Hence this conclude the Movistar marketing mix.
About Movistar:
Movistar is one of the biggest telecommunications brand which is owned by a company called Telefónica which operates in Spain and in many other Hispanic American countries which include Mexico, Colombia, Argentina etc.
The Movistar brand was launched in Spain in the year 1995 with the launch of GSM services. In 2005, after Telefonica purchased the business of Bell South mobile operations in South America, the brand Movistar got more recognition.
This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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